CHAPTER 8.6. California Earthquake Authority [10089.5. - 10089.55.]

Chapter 8.6 added by Stats. 1995, Ch. 944, Sec. 2.

§§ 10089.5–10089.55 · 52 sections

§ 10089.5 As used in this chapter: (a) “Authority” means the California Earthquake Authority. (b) “Available capital” means the sum of all moneys and invested assets…
§ 10089.6 (a) (1) There is hereby created the California Earthquake Authority, which shall be administered and governed by the governing board described in Section…
§ 10089.7 (a) The authority shall be governed by a three-member governing board consisting of the Governor, the Treasurer, and the Insurance Commissioner, each of whom…
§ 10089.8 (a) The authority shall operate pursuant to a written plan of operations. The panel shall submit a plan to the board for approval. If it approves the plan, the…
§ 10089.9 (a) Upon commencement of participation in the authority, each participating insurer shall be required to execute a contract with the commissioner and the…
§ 10089.10 To expand the capacity of the authority and achieve maximum capacity for writing earthquake coverage, the authority shall do both of the following acts, on…
§ 10089.11 (a) The commissioner shall adopt regulations to implement the provisions of this chapter within 60 days of its effective date. The regulations shall be adopted…
§ 10089.12 The commissioner shall have full power and authority to examine the books and records of the authority at any time, and in connection with the operations and…
§ 10089.13 (a) One year following its commencement of operations, and annually thereafter by each August 1, the authority shall report to the Legislature and the…
§ 10089.14 (a) The authority shall not issue any earthquake policy and no insurer shall transfer any earthquake risk to the authority until all of the following…
§ 10089.15 (a) Initial operating capital shall be contributed by insurance companies admitted to write residential property insurance in the state. Each insurer that…
§ 10089.16 (a) On application to the board, payment of any assessments and fees calculated by the board, and fulfillment of any additional requirements imposed by the…
§ 10089.17 Notwithstanding subdivision (h) of Section 10089.7, the authority shall be subject to the provisions of the Political Reform Act of 1974 (Title 9 (commencing…
§ 10089.19 (a) Participating insurers that want to withdraw from the authority may do so on 12 months’ written notice to the authority. Insurers that withdraw shall not…
§ 10089.20 The authority shall renew any policy of basic residential earthquake insurance, provided the authority receives payment of the applicable renewal premium on or…
§ 10089.21 The authority is a public instrumentality of the State of California and the exercise of its powers is an essential state governmental function. No provision…
§ 10089.22 (a) The authority shall be continued in existence for so long as its bonds are outstanding. Unless and until the authority is terminated pursuant to Section…
§ 10089.23 (a) (1) If at any time following the payment of earthquake claims and claim expenses the authority’s available capital is reduced to less than three hundred…
§ 10089.24 (a) Notwithstanding any other provision of this chapter, the maximum permissible assessment pursuant to Section 10089.23 of a participating insurer that began…
§ 10089.25 Beginning December 31, 1997, and annually thereafter on the 30th of April, the board shall notify each participating insurer of the maximum earthquake loss…
§ 10089.26 (a) The authority shall issue policies of basic residential earthquake insurance, including an option for earthquake loss assessment policies for individual…
§ 10089.27 (a) Every participating insurer that has in-force residential earthquake insurance policies in the state as of the date of commencement of authority operations…
§ 10089.28 (a) All policies of residential earthquake insurance provided by the authority shall be written by the authority. Authority policies shall be marketed and…
§ 10089.29 (a) (1) Notwithstanding the prior approval requirement of Section 10089.10, the authority shall issue and sell investment grade revenue bonds or secure other…
§ 10089.30 If claims and claim expenses paid by the authority due to earthquake events exhaust the total of (a) the authority’s available capital, (b) the maximum amount…
§ 10089.31 If claims and claim expenses paid by the authority due to earthquake events that commence on or after December 1, 2008, exhaust the total of all (a) the…
§ 10089.32 The authority shall endeavor at all times to make specific authority earthquake policyholder assessments, and the Treasurer shall endeavor at all times to…
§ 10089.33 (a) If the average daily balance of the authority’s available capital exceeds six billion dollars ($6,000,000,000) for the last 180 days of any calendar year,…
§ 10089.34 (a) (1) The policies issued by the authority shall not be subject to assessment for, nor shall any authority policyholder be eligible for benefits from, the…
§ 10089.35 (a) If at any time the board determines that all the authority’s available capital may be exhausted and no source of additional funds such as assessments,…
§ 10089.36 In the event a natural disaster program is enacted by Congress, the panel shall convene and prepare a plan to dissolve the authority or conform this act with…
§ 10089.37 The board shall set aside in each calendar year an amount equal to 5 percent of investment income accruing on the authority’s invested funds, or five million…
§ 10089.38 Upon the development and implementation of an economical system satisfactory to the board and the commissioner to prevent misapplication of mitigation funds,…
§ 10089.39 (a) The operational rules of the Earthquake Loss Mitigation Fund shall be part of the authority’s plan of operations. (b) On or before July 1, 2000, the…
§ 10089.395 (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority…
§ 10089.396 (a) In administering the Earthquake Brace and Bolt program pursuant to Section 10089.395, the California Residential Mitigation Program (CRMP) shall do both of…
§ 10089.397 (a) The Legislature finds and declares that there exists the California Residential Mitigation Program, also known as the CRMP, a joint powers authority…
§ 10089.40 (a) Rates established by the authority shall be actuarially sound so as to not be excessive, inadequate, or unfairly discriminatory. Rates shall be established…
§ 10089.41 (a) The offer of an authority policy by a participating insurer shall constitute a mode of insurer compliance with Chapter 8.5 (commencing with Section 10081)…
§ 10089.42 (a) At least once each year a participating insurer shall provide each of its residential property insureds with marketing documents produced at the…
§ 10089.43 Upon termination of the authority by the Legislature, its remaining funds shall be transferred to the General Fund unless otherwise directed by the Legislature.
§ 10089.44 Notwithstanding any other provision of law, premiums collected by the authority shall be exempt from collection of the state’s insurance premium tax, and the…
§ 10089.46 Bonds issued under this chapter shall not be a debt or liability of the state or of any political subdivision of the state, or a pledge of the full faith and…
§ 10089.47 Bonds issued by the authority are legal investments for all trust funds, the funds of all insurance companies, banks, trust companies, executors,…
§ 10089.48 Interest earned on any bonds issued by the authority shall at all times be free from state personal income tax and corporate income tax.
§ 10089.49 The state hereby pledges to and agrees with the holders of bonds that the state will not limit, alter, or restrict the rights hereby vested in the authority to…
§ 10089.50 The Treasurer may from time to time enter into one or more credit facilities permitting the authority to draw an amount up to one billion dollars…
§ 10089.51 The authority shall have the power to pledge to the providers of credit facilities and to the owners of bonds the surcharges imposed or to be imposed pursuant…
§ 10089.52 Nothing in Section 10089.50 or 10089.51 is intended to limit the applicability to the authority of any provision of Section 5450 or subdivision (c) of Section…
§ 10089.53 (a) Any insurer that withdraws from the authority under Section 10089.19 while bonds or other debt is outstanding shall impose annually a premium surcharge on…
§ 10089.54 (a) Unless authorized by a statute enacted subsequent to the effective date of this section, the authority shall cease writing new earthquake insurance…
§ 10089.55 The board shall conduct the affairs of the authority with respect to transacting earthquake insurance, including administering the California Earthquake…